When an emergency occurs and you need cash, that lump of money sitting in your retirement account suddenly looks very tempting.
I recently spoke with an investor who experienced an emergency and wanted to take a loan from his 401(k) until he received his insurance settlement. He was very aware that his 401(k) should be his last resort and was struggling with the decision. Of course, he also received unsolicited advice to take a hardship withdrawal. Thankfully this investor was not only thinking through the situation, but he also sought professional advice.
William G. Lako, Jr., CFP®, is a principal at Henssler Financial and a co-host on “Money Talks”—your trusted resource for your money, your future, your life—airing Saturdays at 10 a.m. on AM 920 The Answer. Mr. Lako is a CERTIFIED FINANCIAL PLANNER™ professional.
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Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.